Costco Mexico Offering Canadian Alternative to US Beef
Alberta beef has landed at Costco stores across Mexico.
Canada’s Agriculture Minister Heath MacDonald attended a ribbon-cutting ceremony last week at a Costco outside Mexico City, celebrating the arrival of porterhouse, New York prime and other cuts of Alberta beef. The deal between JBS Canada and Costco Mexico will send about 20,000 tonnes (22,046 tons) of beef processed in Brooks, Alberta to all 41 Mexican Costco locations.
Salvador Hernandez, director for JBS Mexico, described the arrangement as opening a “new frontier” in a market long dominated by US beef. But that doesn’t mean American suppliers are getting the boot.
Canadian beef is entering shelves alongside meat imported from the US. Claudia Herrera-Blanc, senior director for Mexico and Latin America for Canada Beef, noted the deal took about a year to finalize and involved bringing Costco Mexico officials to tour the Brooks processing plant.
Fresh, boneless beef is Canada’s fourth-largest export to Mexico and is covered by the Canada-US-Mexico Agreement. The trade deal facilitates the movement of agricultural products across North American borders.
For Costco Mexico shoppers, the Canadian additions join maple syrup, rolled oats, ice wine and chicken nuggets already stocked on warehouse shelves. One store official reported selling about $60,000 ($84,000 Canadian) worth of Canadian products weekly.
Costco’s Mexican operations have grown significantly over the past decade. The retailer operates 41 stores across 20 states and recently confirmed expansion plans to add more locations. The Mérida Costco stands out as perhaps the world’s most unique, featuring a preserved cenote in its parking lot.
The beef supply landscape at Costco locations varies by country. In Canada, the retailer has struggled with domestic supply shortages. According to a 2014 industry report, Costco Canada substituted some Canadian AAA grade beef with USDA Choice from the United States and Australian Wagyu when local availability dropped.
The situation reflects broader North American agricultural trade patterns. Most Costco beef comes from US farms, particularly California’s San Joaquin Valley, though the company also sources from Australia and Canada for organic and specialty products.
Mexican shoppers won’t necessarily see dramatic changes in their meat department options. The arrival of Canadian beef expands choices rather than eliminating existing suppliers. Costco’s business model depends on offering high-quality products at competitive prices, which requires maintaining diverse supply chains.
The announcement came during Minister MacDonald’s week-long visit to Mexico, who also secured Mexico’s agreement to lift an 18-month ban on Canadian pet foods made with bovine meal. The pet food industry could see similar supply diversification.
Trade relationships between the three North American partners continue evolving as companies seek reliable product sources. Recent tariff discussions have highlighted how interconnected the continental supply chains have become, with cattle and beef products frequently crossing borders during production.
Mexican Costco shoppers can now expect to see Alberta beef sharing cooler space with products from multiple countries. The additions give members more options but don’t signal a complete shift away from traditional suppliers.
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